ANZ taps Allen & Overy to assist on $43m refinancing

The deal will improve the bank debt facility for a WA-based energy company

ANZ taps Allen & Overy to assist on $43m refinancing

ANZ has brought in Allen & Overy to assist on a refinancing transaction that involves a $43m bank debt facility.

The banking group is a financier to Merredin Energy Pty Limited, a WA-based open-cycle gas turbine power station. Independent infrastructure manager Palisade Investment Partners holds a 46.7% interest in Merredin, and the station’s assets are managed by Palisade Integrated Management Services.

The proceeds from the new bank debt facility will be used to refinance existing bonds issued by Merredin in 2017.

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“As well as improved pricing and terms for Merredin, the new facility extends the tenor of the debt,” Allen & Overy said.

A regulatory change that came into effect in February “provides a guaranteed revenue floor on reserve capacity pricing for Merredin until September 2031,” Palisade Investment Partners said in a May media release.

“This refinancing, combined with the recent favourable regulatory change, means that Merredin has secured long-term financing with an all-in interest rate at historic lows,” Palisade CEO Roger Lloyd said. “This provides Merredin’s investors with certainty and stability of returns over the long term through a combination of fixed revenues and a permanent financing solution that fully amortises Merredin’s debt over its legal maturity.”

“Recent changes to the regulatory environment were key to enabling the parties to agree a robust and long-term financing package, which removes refinancing risk for the asset,” said James Abbott, the firm’s lead partner on the deal.

Abbott headed Allen & Overy’s team alongside associate Catherine Dawson. They were supported by partner Simon Huxley, senior associate Melissa Grinter, associate Rhiannon Haberman and law graduate Brigitte Samaha.

Planum Partners and King & Wood Mallesons advised Merredin on the deal.

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